MBNA Credit card, PPI refusal.

[Big Scouse]

Hi Guru's,

I had been wondering for a while wether or not I had PPI on an old (and settled) MBNA credit card and so I googled them and got a contact no for them, I gave them a ring and spoke to one of their reps who admitted to me over the phone that yes I did have PPI and did have a claim. They took my details and sent me a form out which I duly filled in and returned, I recieved a further letter which I answered and they told me it was under investigation, all good and fairly straightforward so far I thought. I recieved a further phone call from them asking about my sick pay arrangements and a Medicash policy that I also had (and still do have, through my employers). I told them that I would have a maximum of 12 weeks full sick pay from my employers and that would then revert to SSP after that period of time, and that the Medicash policy would also pay out if I was hospitalised, at a fixed rate per day of being admitted to hospital. It was a joint card with my partner and she would recieve a full 12 months sick pay also. They seemed happy and told me they would inform me of their decision within 10 days, which they have done with a refusal letter which I include below:-

 

02/Apr/2013

 

Dear Mr XXXXXX

 

Account ************

 

Thank you for your correspondence dated 27 February 2013 regarding the PPI on this account.

 

I have carefully considered all of the information that you have provided. I have set out my findings below.

 

- You took out the credit card on ** June 199*

- You were sold PPI over the telephone on ** June 199*

- At the time of the sale, you stated that you had been employed as a **** ****** for X years.

 

We have been able to review the information that our associates were required to give you at the time, from which it is clear that your sale was made on a non-advised basis.

 

You have said that the policy was not suitable for your needs. Since no advice was given, our associates were not required to ask whether you had any existing insurance in place, collate any information about your demands, needs and circumstances and nor did we have a duty to ensure that the policy was suitable for you. However, we were required to give you information which was adequate for you to make an informed decision about whether or not you wished to purchase the policy.

 

The information that our associates were required to give you at the time of the sale required them to set out the terms and conditions of the policy, eligibility details, the main exclusions and details of the 30 day cancellation period. In addition, you were sent a Policy Summary and full policy terms and conditions after the call. The Policy Summary set out the eligibility for the policy, the benifits of the policy, the main exclusions and the cancellation terms. The full Policy Document provided further comprehensive information. As such, I consider it more likely than not that your information needs were met.

 

You have also stated that you believed that you had to purchase the policy in order to be accepted for the credit card. Our records show that you purchased the policy on a telephone call on ** June 199* and this is after the ** June 199*, the date on which the credit card was opened. In view of this I am unable to consider this element of your complaint.

 

 

After considering all of the information I have about your complaint, I note that you would still have received significant benefit from this policy in the event of disability or unemployment, as the benefit more than covered your minimum payments each month.

Furthermore, your sick pay and other benefits would not have prevented you from making a claim under the policy and there were no other terms, limitations or exclusions which were likely to have prevented you from making a claim.

 

In Addition:

 

- In the documentation that you were sent, you were informed that you could cancel the policy within 30 days; and

 

- Given the nature of a monthly premium policy, you were able to cancel it at any time without suffering any financial detriment.

 

In concluding my investigation, I regret to inform you that I am unable to uphold your complaint or issue a refund of the premiums you have paid. I am hoping that my explanation has been helpful in setting out clearly why I have taken this view.

 

This is our final reponse to your complaint. If you remain dissatisfied, you now have the right to refer your complaint to the Financial Ombudsman Service, which you must do within six months of the date of this letter. For more information about how to do this, please read the enclosed Financial Ombudsman Service leaflet.

 

Their address is:

 

Financial Ombudsman Service

Customer Contact Division

South Quay Plaza

183 Marsh Wall

LONDON

E14 9SR

 

Yours Sincerely

 

XXXXXXX

 

 

 

So my quesion now is:

 

Where do I go from here? Is this a standard response from them or do I take it to FOS and if I do, do I have a leg to stand on?

 

Thanks

 

Big Scouse.

[ken100464]

Unless you have further proof, that is the rejection if you not happy go to FOS response so no point in going back to MBNA.

 

CC's are not joint so your wife if she is associate wont come into it. Her only contribution would be she would cover your bills if you couldnt. Pretty normal for a couple one would think but not one they will accept.

 

One thing I cant get my head round is if it was a telephone sales call then you spoke to someone. Advised sale is you spoke to someone even if they chose not to go through the process of advising you it was a crap deal for you. They wouldnt would they and hence the reason of the scandal in the first place.

 

So the line it was non advised isnt correct in their letter. It was advised just they chose not to advise you about the product. Non advised is if you got it from a leaflet or the internet or such.

 

For me the whole case is going to revolve around this sentence and how your if you do it how your complaint to FOS deals with it.

 

"Since no advice was given, our associates were not required to ask whether you had any existing insurance in place, collate any information about your demands, needs and circumstances and nor did we have a duty to ensure that the policy was suitable for you. However, we were required to give you information which was adequate for you to make an informed decision about whether or not you wished to purchase the policy"

 

If they didnt check if you had insurance how can they give you information that was adequate to make an informed decision?????????????????????????

 

You could have had full insurance for everything but they didnt check so they cant give you the information to make any decision. And if they were "required" their words not mine to give information for you to make an informed decision then surely one of the first questions they should have asked is "do you have any insurance for illness disabilty or unemployment already".

 

But what they are trying to say is that this is non advised so you have miss purchased as opposed to had a miss sell.

 

I would go to FOS nothing to lose everything to gain but you have to change the miss purchase into a miss sale. But at present I think FOS will side with MBNA.

 

Hope you get the drift. You are halfway there as you have got an admission an MBNA drone spoke to you. Only the drone and you were in that conversation. Do they have coms log data? Doubt it is way into the time when dinosaurs roamed the earth and MBNA are not noted for keeping stuff.

 

They are saying they just had to read out x y and z and from that you could make an informed decision. More like it was a high pressure salescall told you would get x y and z benifits for a tiny amount of money per month as insurance. Furthermore having this PPI would enhance the probability of acceptance. If you applied 2 weeks before you wouldnt have got the stuff through yet its part of the process????? But the start date of your account would be when you applied not when they accepted you??? We will send the gumpf out today no need to do anything else sir.

 

But like I said they have at this moment turned this into a miss purchase and to win its got to be turned into a miss sale.

[Big Scouse]

Mmmmm well thanks for that, need to sit and think this one through............